Thu Oct 17 20:04:37 UTC 2024: ## Infosys ADRs Drop After Disappointing Q2 Earnings

**New York, October 12, 2024** – Shares of Infosys, the Indian IT giant, fell nearly 2% in pre-market trading on the New York Stock Exchange (NYSE) following the release of its disappointing September quarter results.

The Infosys ADR was trading at $22.50, down 1.75% or 40 cents from its previous close of $22.90. The decline comes despite a 4.7% year-on-year (YoY) rise in net profit to Rs 6,506 crore, compared to Rs 6,212 crore in the same quarter last year. This figure fell short of analysts’ expectations of a 10-15% YoY profit increase.

While Infosys reported a 5.1% rise in sales to Rs 40,986 crore, in line with market estimates, the company revised its FY25 revenue guidance to 3.75%-4.50%. It retained its margin guidance at 20%-22%.

Salil Parekh, Infosys CEO and MD, attributed the growth to “strength in industry expertise, market-leading capabilities in cloud with Cobalt and generative AI with Topaz,” resulting in increased client preference for the company.

“Our large deals at $2.4 billion in Q2 reflect our differentiated position,” Parekh added. “I am grateful to our employees for their unwavering commitment to our clients as we further strengthen our market leadership.”

Despite the positive statements, the market’s reaction indicates that investors remain cautious about the company’s future prospects. The ADR decline suggests that the company’s earnings fell short of investor expectations, particularly in terms of profit growth.

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